maybank annual report 2012 - financial statements book

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Today, we stand by Asia with assets in excess of RM495 billion.

Today, we stand by Asia with assets in excess of RM495 billion. Maybank, one of Southeast Asias largest banks, has been supporting your aspirations for more than 50 years. Serving you in 20 countries across the globe and connecting you to new opportunities through 2,200 offices across Southeast Asia, Greater China and the world. We are Humanising Financial Services Across Asia.

www.maybank.com

FINANCIAL STATEMENTS

Record Earnings

Net Profit of RM5.74 billion

Double DigitLoans Growth in Home MarketsMalaysia: 12%, Singapore: 11% Indonesia: 21%

RM495 billionTotal AssetsStrong Balance Sheet

Landmark Equity Placement Ahead of Basel 3Core Equity Tier 1 of 11%(based on 85% reinvestment rate)

LeadingAsiaANNUAL REPORT 2012

Leading

OVER 2,200OFFICES

WERELEADINGASIA in more ways than one. With a presence in 10 Southeast Asian countries and expansion of our business footprint across the region, we have accelerated our momentum across Asia and were confident of our role in contributing to Asias prosperity and sustainability. We offer consistent service with seamless banking and a wider spectrum of value-added services. We provide our customers with easy access to financial services, fair terms and pricing and advise them on their financial needs. At the same time, we remain committed to being at the heart of the communities we serve.

ASASIACONTINUESto grow in spite of a challenging world economy, we remain committed to its people and its diverse communities. In the spirit of Maybank, we continue to humanise financial services and provide enhanced value in the diversity of our products and services.

20COUNTRIES

47,000MAYBANKERS

22MILLION CUSTOMERS

ASIATOTAL ASSETS

RM495 BILLIONNET PROFIT

RM5.74BILLIONMARKET CAPITALISATION

RM77 BILLION

OUR PERFORMANCE2 Highlights of 20124 Five-Year Group Financial Summary6 Simplified Group Statements of Financial Position7 Group Quarterly Financial Performance8 Key Interest Bearing Assets and Liabilities9 Statement of Value Added10 Segmental Information

THE FINANCIALS13 Statement of Directors Responsibility14 Analysis of Financial Statements16 Financial Statements

BASEL II PILLAR 3462 Basel II Pillar 3 Disclosure

CONTENTS

Completed a landmark equity placement of RM3.66 billion, the largest in Malaysian corporate history to strengthen our capital position ahead of Basel III, and support the Groups operations.

Note:The Group has changed its financial year-end from 30 June to 31 December. Comparatives are for 12 months results beginning 1 January 2011 to 31 December 2011. The figures are unaudited, and are referred to as CY2011 in this Annual Report. Figures for FP2011 are audited results for the six-months financial period ended 31 Dec 2011 as part of the Groups transition to a December financial year end. Figures for FY2009-FY2011 are twelve-months audited figures for the financial year ended 30 June.

Record earnings with profit after tax and minority interest (PATAMI), growing 17.6% to RM5.74 billion on the back of sustained growth in net fund based income and fee based income, supported by improved cost efficiency.

PBT from international operations surged to 30.2% from 23.8% a year earlier as international revenue grew 15.5% on the back of a 12.9% growth in Gross international loans.30%

10

INTERNATIONAL PBT CONTRIBUTION

SOUTHEAST ASIAN COUNTRIES

CY2011: 23.8%

Maybank Kim Eng integration on track, and creating value for the Global Wholesale Banking sector (now known as Global Banking). Notable deals in 2012 included IPOs, M&As, private placements and project financing in Malaysia, Singapore, Hong Kong & Philippines.

We strengthened our regional presence, and are now in 10 Southeast Asian countries with the opening of offices in Myanmar and Laos in 2012 and enhanced focus in Greater China after opening our new Beijing branch.

STRENGTHENED CAPITAL POSITION

AHEAD OF

BASEL III

RM5.74 billionNET PROFIT

+17.6% Refer to page 78 for Group Financial Review in Annual Report 2012

Refer to page 104 for Investment Banking in Annual Report 2012

Refer to page 118 for International Operations in Annual Report 2012

Refer to page 85 in Group Financial Review in Annual Report 2012

Refer to page 82 in Group Financial Review in Annual Report 2012

HIGHLIGHTS OF 2012

Maybank Annual Report 2012

2our performance

Our Performance

The FinancialsBasel II Pillar 3

Dividend Per Share

65 sen

Profit Attributable toEquity Holders of the Bank

FY09 FY10 FY11 FP11 FY12


FY09 FY10 FY11 FP11 FY12 FY09 FY10 FY11 FP11 FY12 FY09 FY10 FY11 FP11 FY12

RM5.74 billion


FY09 FY10 FY11 FP11 FY12 FY09 FY10 FY11 FP11 FY12

Earnings Per Share

72.7 sen


Return on Equity

16.0 %

Total Assets

RM494.9 billionLoans, Advances and Financing

RM311.8 billionCapital Adequacy Ratio

RWCR: 17.35%

Market Capitalisation

RM76.6 billionShare Price

RM9.20

0.69

3.82

4.45

2.59

5.74

12.0

53.9 6

1.4

34.5

72.7

3.1

14.5

14.5 15

.2 16.0

310.

7

336.

7 411

.3 451.

6 494.

9

8

55

60

36

65

186.

3

205.

9 255

.0 276.

3 311.

8

10.8

114

.81

10.9

714

.58

11.8

415

.36

11.6

516

.37

13.5

417

.35

41.8

53.5

66.9

65.6

76.6

5.90

7.56

8.94

8.58 9.

20

* assuming full reinvestment of DRP

FINANCIAL HIGHLIGHTS

NON-FINANCIAL HIGHLIGHTS

Human Capital Global Network Customers47,000 Maybankers worldwide 2,200 offices 20 countries 22 million worldwide

3our performance

Group

FP 31 Dec FY 31 Dec2009 2010 2011 2011 1 2012

OPERATING RESULT (RM' million)2Operating revenue 17,586 18,560 21,040 12,892 27,532Operating profit 3,064 5,249 6,135 3,497 7,742Profit before taxation 1,674 5,370 6,270 3,571 7,895Profit attributable to equity holders of the Bank 692 3,818 4,450 2,587 5,745KEY STATEMENTS OF FINANCIAL POSITION DATA (RM million)2Total assets 310,739 336,700 411,254 451,595 494,866Financial investments portfolio3 70,132 68,885 76,871 84,669 92,820Loans, advances and financing 186,252 205,894 255,018 276,253 311,825Total liabilities 284,971 308,035 377,522 415,584 450,912Deposits from customers 212,599 236,910 282,797 314,692 347,156Commitments and contingencies 221,587 232,273 292,109 369,792 379,695Paid-up capital 7,078 7,078 7,478 7,639 8,440Shareholders' equity 24,899 27,877 32,395 34,456 42,229SHARE INFORMATION2Per share (sen) Basic earnings4 12.0 53.9 61.4 34.5 72.7 Diluted earnings4 12.0 53.9 61.4 34.5 72.7 Gross dividend 8.0 55.0 60.0 36.0 65.0 Net assets (sen) 351.8 393.9 433.2 451.1 500.3Share price as at 31 Dec/30 June (RM) 5.90 7.56 8.94 8.58 9.20Market capitalisation (RMmillion) 41,758 53,510 66,855 65,546 76,551FINANCIAL RATIOS (%)2Profitability Ratios/Market ShareNet interest margin on average interest-

earning assets 2.8 2.9 2.6 2.5 8 2.4Net interest on average risk-weighted assets 3.4 3.5 3.6 4.0 8 3.9Net return on average shareholders' funds 3.1 14.5 14.5 15.2 8 16.0Net return on average assets 0.2 1.2 1.2 1.2 8 1.2Net return on average risk-weighted assets 0.3 1.6 1.8 2.0 8 2.1Cost to income ratio5 52.2 46.5 49.2 49.7 48.6Domestic market share in: Loans, advances and financing 17.8 17.6 18.1 17.9 18.2 Deposits from customers - Savings Account 26.6 27.7 27.9 27.6 27.7 Deposits from customers - Current Account 21.3 20.5 20.7 19.5 20.2CAPITAL ADEQUACY RATIOS (%)2 (after deducting proposed final dividend)Core capital ratio6 10.8 10.111.0 11.211.8 11.011.7 12.813.5Risk-weighted capital ratio6 14.8 13.714.6 14.715.4 15.716.4 16.617.4ASSET QUALITY RATIOS2Net impaired loans/non-performing loans ratio (%) 1.6 1.2 2.3 1.9 1.1Loan loss coverage (%) 112.9 124.5 82.3 86.9 105.6Net loans to deposit ratio (%) 87.4 86.8 90.2 87.8 89.8Deposits to shareholders' fund (times) 8.5 8.5 8.7 9.1 8.2VALUATIONS ON SHARE2Gross dividend yield (%) 1.4 7.3 6.7 4.2 7.1Dividend payout ratio (%) 61.4 76.5 74.9 79.9 74.7Price to earnings multiple (times)7 49.1 14.0 14.6 24.9 12.7Price to book multiple (times) 1.7 1.9 2.1 1.9 1.8

1 The results consist of six-months financial period ended 31 December 2011 due to the change of financial year end from 30 June to 31 December.

2 Comparative figures were restated due to first-time adoption of Malaysian Financial Reporting Standards (MFRS) Framework and changes in accounting policies.

3 Financial investments portfolio consists of financial assets at fair value through profit or loss, financial investments available-for-sale and financial investments held-to-maturity.

4 Adjusted for rights issue completed on 30 April 2009 and bonus issue of 1:4 completed on 20 February 2008 and Maybank Group Employees Share Scheme relating to the Restricted Share Unit as at 31 December 2011.

5 Cost to income ratio is computed using total cost over the net income. The total cost of the Group is the total overhead expenses, excluding amortisation of intangible assets for PT Bank International Indonesia Tbk and Maybank Kim Eng Holdings Limited.

6 The capital adequacy ratios for Dec 2012, Dec 2011, June 2011 and June 2010 present the two range of extreme possibilities, i.e.(i) where the full electable portion is not reinvested; and(ii) where the full electable portion is reinvested in new ordinary shares

in accordance with the Dividend Reinvestment Plan.7 Price to earnings multiple (times); (2009) 12.8 times (before impairment

of goodwill/associate). 8 Annualised.

FIVE-YEAR GROUP FINANCIAL SUMMARY


4our performance

Our Performance


Bank

FP 31 Dec FY 31 Dec20111 2012

8,175 17,3462,670 5,4982,670 5,4982,065 4,306

324,000 342,55755,956 60,643

194,174 214,852294,365 305,661222,895 237,402336,480 338,799

7,639 8,44029,634 36,895

27.5 54.527.5 54.536.0 65.0

387.9 437.1

2.28 2.13.38 3.1

14.38 13.81.38 1.32.28 2.2

41.7 43.3

17.9 18.227.6 27.719.5 20.2

14.715.7 16.317.314.715.7 16.317.3

2.1 1.183.3 106.887.1 90.5 7.5 6.4

Loans, advances and financingRM311.8 billion

186.

3

FY09 FY10

205.

9

FY11

255.

0

FP11

276.

3

FY12

311.

8

1.67

FY09 FY10

5.37

FY11

6.27

FP11

3.57

FY12

7.89

Profit Before TaxationRM7.89 billion

310.

7

FY09 FY10

336.

7

FY11

411.

3

FP11

451.

6

FY12

494.

9

Total AssetsRM494.9 billion

285.

0

FY09 FY10

308.

0

FY11

377.

5

FP11

416.

6

FY12

450.

9

Total LiabilitiesRM450.9 billion

212.

6

FY09 FY10

236.

9

FY11

282.

8

FP11

314.

7

FY12

347.

2

Deposits from CustomersRM347.2 billion

24.9

FY09 FY10

27.9

FY11

32.4

FP11

34.5

FY12

42.2

Shareholders EquityRM42.2 billion

7.1

FY09 FY10

7.1

FY11

7.5

FP11

7.6

FY12

8.4

Paid-up CapitalRM8.4 billion

0.69

FY09 FY11

4.45

FP11

2.59

FY12

5.74

Profit Attributable toEquity Holders of the Bank

RM5.74 billion

3.82

FY10

5our performance

SIMPLIFIED GROUP STATEMENTS OF FINANCIAL POSITION

1.6%

Assets

10.9%

18.8%

61.2%

RM451.6 Billion

5.2%2.3%

As at 31 December 2011

Cash and short-term funds

Deposits and placements with financial instutionFinancial investments portfolioLoans, advances and financing

Other assets

Statutory deposits with central banks

Liabilities & Shareholders Equity

RM451.6 Billion

0.4%

8.1%

1.7%4.5%

5.9%

69.7%

9.7%


Deposits from customers

Deposits and placementsfrom financial institutionsOther liabilities

Subordinated obligationsand capital securities

Share capital

Reserve

Noncontrolinginterests

Assets

RM494.9 Billion


5.2%2.5%

2.4%8.1%

18.8%

63.0%

1.7%4.0%

Liabilities & Shareholders Equity

6.8%

0.3%

70.2%6.9%

10.1%

RM494.9 Billion



6our performance

Our Performance


FYE 31 December 2012

RM million Q1 Q2 Q3 Q4 YEAR

Operating revenue 6,658 6,876 6,971 7,027 27,532Net interest income (including income from Islamic banking business) 2,556 2,673 2,727 2,721 10,677Net income from insurance/takaful business 87 170 91 304 652Operating profit 1,860 1,978 1,989 1,915 7,742Profit before taxation and zakat 1,895 2,026 2,025 1,949 7,895Net profit attributable to equity holders of the Bank 1,347 1,437 1,501 1,460 5,745Earnings per share (sen) 17.63 18.64 19.11 17.29 72.67Dividend per share (sen) 32.00 33.00 65.00

FPE 31 December 20111

RM million Q1 Q2 6M

Operating revenue 6,155 6,737 12,892Net interest income (including income from Islamic banking business) 2,390 2,644 5,034Net income from insurance/takaful business 177 250 427Operating profit 1,804 1,693 3,497Profit before taxation and zakat 1,840 1,731 3,571Net profit attributable to equity holders of the Bank 1,328 1,259 2,587Earnings per share (sen) 17.76 16.72 34.48Dividend per share (sen) 36.00 36.00

1 The results consist of six-months financial period ended 31 December 2011 due to the change of financial year end from 30 June to 31 December. The results were restated due to first-time adoption of Malaysian Financial Reporting Standards (MFRS) Framework and changes in accounting policies.

7our performance

GROUP QUARTERLY FINANCIAL PERFORMANCE

KEY INTEREST BEARING ASSETS AND LIABILITIES

FYE 31 Dec 2012

As at 31 December

RM' million

EffectiveInterest Rate

%

InterestIncome/Expense

RM' million

Interest earning assets

Loans, advances and financing 311,825 6.38 15,131 Cash and short-term fund & deposits and placements with financial institutions 51,968 1.79 792 Financial assets at fair value through profit or loss 29,157 3.89 103 Financial investments available-for-sale 60,792 3.38 1,695 Financial investments held-to-maturity 2,871 3.56 327

Interest bearing liabilities

Deposits from customers 347,156 1.78 5,957 Deposits and placements from financial institutions 33,887 2.03 861 Borrowings 10,714 3.29 389 Subordinated obligations 13,510 4.46 562 Capital securities 6,150 6.54 401

FPE 31 Dec 20111

As at 31 December

RM' million

EffectiveInterest Rate

%

InterestIncome/Expense

RM' million

Interest earning assets

Loans, advances and financing 276,253 6.46 7,017 Cash and short-term fund & deposits and placements with financial institutions 56,550 2.19 385 Financial assets at fair value through profit or loss 18,394 3.21 67 Financial investments available-for-sale 63,585 3.66 851 Financial investments held-to-maturity 2,690 3.67 232

Interest bearing liabilities

Deposits from customers 314,692 1.92 2,725Deposits and placements from financial institutions 36,761 1.90 393 Borrowings 7,185 4.00 153 Subordinated obligations 14,161 4.27 236Capital securities 6,114 6.54 201

1 The results consist of six-months financial period ended 31 December 2011 due to the change of financial year end from 30 June to 31 December. The results were restated due to first-time adoption of Malaysian Financial Reporting Standards ("MFRS") Framework and changes in accounting policies.


8our performance

Our Performance


VALUE ADDED

FPE 31 Dec20111

RM'000

FYE 31 Dec2012

RM'000

Net interest income 4,026,278 8,480,717Income from Islamic Banking Scheme operations 1,008,037 2,196,259Net income from insurance/takaful business 426,519 652,445Other operating income 2,374,180 5,273,749Overhead expenses excluding personnel expenses, depreciation and amortisation (1,662,651) (3,198,880)Allowances for impairment losses on loans, advances and financing, net (329,080) (642,711)Allowances for impairment losses on financial investments, net (67,237) (60,216)Share of profits of associates 74,234 152,476

Value added available for distribution 5,850,280 12,853,839

DISTRIBUTION OF VALUE ADDED

FPE 31 Dec20111

RM'000

FYE 31 Dec2012

RM'000

To employees: Personnel expenses 2,096,715 4,589,373To the Government: Taxation 888,993 1,977,306To providers of capital: Dividends paid to shareholders 1,794,772 3,944,958 Non-controlling interests 95,047 172,597To reinvest to the Group: Depreciation and amortisation 182,473 369,867 Retained profits 792,280 1,799,738

Value added available for distribution 5,850,280 12,853,839

1 The results consist of six-months financial period ended 31 December 2011 due to the change of financial year end from 30 June to 31 December. The results were restated due to first-time adoption of Malaysian Financial Reporting Standards ("MFRS") Framework and changes in

accounting policies.

9our performance

STATEMENT OF VALUE ADDED

SEGMENTAL INFORMATION

ANALYSIS BY GEOGRAPHICAL LOCATION

FPE 31 Dec 20111 FYE 31 Dec 2012

NET INCOME RM'000 Composition RM000 Composition

1 Malaysia 5,048,289 64% 10,663,215 64%

2 Singapore 1,254,328 16% 2,463,826 15%

3 Indonesia 1,161,984 15% 2,562,083 15%

4 Other Locations 370,413 5% 914,046 6%

7,835,014 100% 16,603,170 100%

FPE 31 Dec 20111 FYE 31 Dec 2012

PROFIT BEFORE TAXATION RM'000 Composition RM000 Composition

1 Malaysia 2,632,796 74% 5,510,254 70%

2 Singapore 569,336 16% 1,138,759 14%

3 Indonesia 166,318 5% 553,985 7%

4 Other Locations 202,642 5% 691,601 9%

3,571,092 100% 7,894,599 100%



10our performance

Our Performance


ANALYSIS BY ACTIVITY

FPE 31 Dec 20111 FYE 31 Dec 2012

NET INCOME RM000 RM000

1 Community Financial Services 3,386,321 6,870,524

2 Global Banking 2,146,607 5,291,516

3 International Banking 2,438,392 5,172,399

4 Insurance, Takaful and Asset Management 602,358 1,197,020

5 Head Office and Others (738,664) (1,928,289)

7,835,014 16,603,170

FPE 31 Dec 20111 FYE 31 Dec 2012

PROFIT BEFORE TAXATION RM000 RM000

1 Community Financial Services 1,688,834 3,024,238

2 Global Banking 1,250,300 3,808,135

3 International Banking 977,262 2,292,913

4 Insurance, Takaful and Asset Management 393,360 697,602

5 Head Office and Others (738,664) (1,928,289)

3,571,092 7,894,599


11our performance

FINANCIALSTATEMENTS13 Statement of Directors Responsibility

14 Analysis of Financial Statements

16 Directors Report

29 Statement by Directors

29 Statutory Declaration

30 Independent Auditors Report

32 Index to the Financial Statements

34 Consolidated Statement of Financial Position

36 Statement of Financial Position

37 Income Statements

39 Statements of Comprehensive Income

40 Consolidated Statement of Changes in Equity

42 Statement of Changes in Equity

44 Statements of Cash Flows

47 Notes to the Financial Statements

The directors are responsible for ensuring that the annual audited financial statements of the Group and of the Bank are drawn up in accordance with the requirements of the applicable approved Malaysian Financial Reporting Standards issued by the Malaysian Accounting Standards Board, the requirements of the Companies Act, 1965, Bank Negara Malaysias Guidelines and the Listing Requirements of Bursa Malaysia Securities Berhad.

The directors are also responsible for ensuring that the annual audited financial statements of the Group and of the Bank are prepared with reasonable accuracy from the accounting records of the Group and of the Bank so as to give a true and fair view of the financial position of the Group and of the Bank as at 31 December 2012, and of their financial performance and cash flows for the year then ended.

In preparing the annual audited financial statements, the directors have:

considered the applicable approved accounting standards in Malaysia; adopted and consistently applied appropriate accounting policies; made judgments and estimates that are prudent and reasonable; and prepared the financial statements on a going concern basis as the directors have a reasonable expectation, having made

enquiries, that the Group and the Bank have adequate resources to continue in operational existence for the foreseeable future.

The directors also have a general responsibility for taking reasonable steps to safeguard the assets of the Group and the Bank to prevent and detect fraud and other irregularities.

STATEMENT OF DIRECTORS RESPONSIBILITYIn Respect of the Audited Financial Statements

Our Performance


the financials13

ANALYSIS OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

RM billion Dec 2012 Dec 2011 Variance % change

Cash and short-term funds 40.0 49.4 (9.4) -19.0%Deposits and placements with

financial institutions 12.0 7.2 4.8 66.7%Financial investments portfolio 92.8 84.7 8.1 9.7%Loans, advances and financing 311.8 276.2 35.6 12.9%Derivative assets 2.9 2.0 0.9 45.0%Reinsurance/retakaful assets and

other insurance receivables 2.6 2.2 0.4 18.2%Statutory deposits with central banks 12.3 10.6 1.7 16.0%Interest in associates 2.2 2.4 (0.2) -8.3%Intangible assets 6.5 6.7 (0.2) -3.0%Other assets 11.8 10.2 1.6 14.7%

TOTAL ASSETS 494.9 451.6 43.3 9.6%

Deposits from customers 347.2 314.7 32.5 10.3%Deposits and placements from

financial institutions 33.9 36.7 (2.8) -7.6%Derivative liabilities 2.4 2.2 0.2 9.1%Insurance/takaful contract liabilities

and other insurance payables 21.9 20.1 1.8 9.0%Borrowings 10.7 7.2 3.5 48.6%Subordinated obligations 13.5 14.2 (0.7) -4.9%Capital securities 6.1 6.1 (0.0) -0.0%Other liabilities 15.2 14.4 0.8 5.6%

TOTAL LIABILITIES 450.9 415.6 35.3 8.5%

Shareholders equity 42.2 34.4 7.8 22.7%Non-controlling interests 1.8 1.6 0.2 12.5%

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 494.9 451.6 43.3 9.699.6%

TOTAL ASSETS

For the year ended 31 December 2012, the Groups total assets grew RM43.3 billion or 9.6% to RM494.9 billion compared to a growth of 9.8% for the 6-month period ended 31 December 2011. The Groups total assets growth was attributed mainly to the growth in loans, advances and financing of RM35.6 billion or 12.9% and growth of the financial investments portfolio by RM8.1 billion or 9.7% but was offset by a decline in cash and short-term funds of RM9.4 billion or 19.0%.

DEPOSITS AND PLACEMENTS WITH FINANCIAL INSTITUTIONS

The Groups deposits and placements with financial institutions rose RM4.8 billion or 66.7% to RM12.0 billion.

FINANCIAL INVESTMENTS PORTFOLIO

The Groups financial investments portfolio increased by RM8.1 billion or 9.7% to RM92.8 billion mainly due to the increase in financial assets at fair value through profit or loss of RM10.8 billion. This was mitigated by a decrease in financial investments available-for-sale of RM2.8 billion.

The financial investments portfolio comprised 65.5% in financial investments available-for-sale, 31.4% in financial assets at fair value through profit or loss and the remainder 3.1% was in financial investments held-to-maturity.

LOANS, ADVANCES AND FINANCING

Net Group loans growth remained in double-digit territory with a healthy 12.9% rise to RM311.8 billion. Gross Group loans, grew by 12.2% with Malaysia and Singapore operations growing ahead of industry rate of 10.4% in both locations, reaching 11.8% and 10.5% respectively. Indonesia saw loans growing at a more robust pace of 20.8% while other international markets registered a rise of 12.9%.

TOTAL LIABILITIES

Total liabilities for the Group increased by RM35.3 billion or 8.5% to RM450.9 billion. The increase in deposits from customers was the main contributor to the growth in total liabilities.

DEPOSITS FROM CUSTOMERS

The Groups customer deposits expanded strongly across the three home markets, reinforcing the Groups regional franchise, with higher growth momentum recorded in Indonesia. Groups deposits from customers increased by RM32.5 billion or 10.3% to RM347.2 billion, led by a 22.3% rise in Indonesia with Singapore and Malaysia registering a 12.7% and 8.5% rise respectively.

The Groups continued focus on growing low cost deposits has also showed an overall improvement in the funding mix with lower cost of funds consisting of savings and demand deposits growing at 15.1% to RM122.1 billion. As a result, the CASA (current and savings account) ratio improved from 33.6% a year ago to 35.1% for the current financial year.

DEPOSITS AND PLACEMENTS FROM FINANCIAL INSTITUTIONS

Deposits and placements from financial institutions which mainly consist of interbank borrowings, decreased by RM2.8 billion or 7.6% to RM33.9 billion as at 31 December 2012 due to the Groups funding and gapping activities.

ANALYSIS OF FINANCIAL STATEMENTS


the financials14

SHAREHOLDERS EQUITY

The Groups shareholders equity grew by RM7.8 billion or 22.7% to RM42.2 billion mainly due to the increase in share capital and share premium arising from shares issued pursuant to the Private Placement and the Dividend Reinvestment Plan.

ANALYSIS OF CONSOLIDATED INCOME STATEMENT

RM million FY2012 CY2011* Variance % change

Net interest income 8,480.7 7,624.4 856.3 11.2%

Net fund based income (Islamic Banking) 1,699.4 1,560.9 138.5 8.9%

Net fund based income 10,180.1 9,185.3 994.8 10.8%Non-interest income 5,273.7 4,499.7 774.0 17.2%Fee based income (Islamic Banking) 496.9 278.0 218.9 78.7%Net income from insurance business 652.4 856.0 (203.6) -23.8%

Net fee based income 6,423.0 5,633.7 789.3 14.0%

Net income 16,603.2 14,819.0 1,784.2 12.0%

Overhead expenses (8,158.1) (7,457.9) (700.2) 9.4%Allowances for impairment losses on loans (642.7) (449.0) (193.7) 43.1%Impairment losses on financial investments (60.2) (177.0) 116.8 -66.0%

Operating profit 7,742.1 6,735.1 1,007.0 15.0%

Share of profits in associates 152.5 140.1 12.4 8.9%

Profit before taxation and zakat 7,894.6 6,875.2 1,019.4 14.8%Taxation and zakat (1,977.3) (1,753.6) (223.7) 12.8%Non-controlling interest 172.6 237.6 (65.0) -27.4%

Profit attributable to equity holders of bank 5,744.7 4,884.0 860.7 17.6%

EPS - Basic (sen) 72.7 65.1 7.6 11.7%

* unaudited

The Group posted profit after tax attributable to equity holders of RM5,744.7 million for the financial year ended 31 December 2012, an increase of RM860.7 million or 17.6% over the corresponding twelve-month financial period ended 31 December 2011.

NET FUND BASED INCOME

The Group recorded double digit growth in net fund based income. The Groups net interest income and Islamic banking fund based income for the financial year ended 31 December 2012 increased by RM994.8 million or 10.8% compared to the corresponding 12 months financial period ended 31 December 2011. This was largely due to the 12.9% year-on-year growth in the Groups net loans and advances (including Islamic finance).

NET FEE BASED INCOME

Net fee based income grew RM789.3 million or 14.0%. Fee income increased mainly contributed by higher fee income from the Bank, higher wakalah fee earned by Etiqa Takaful Berhad and higher fee income from Maybank Kim Eng during the financial year ended 31 December 2012 whereas in the preceding period, Maybank Kim Engs results were consolidated for eight months as Maybank Kim Engs acquisition was completed in May 2011.

The Group also benefited from higher gain on sale of financial investments portfolio and higher unrealised gain on revaluation of financial assets at fair value through profit or loss and derivatives of RM231.2 million and RM343.8 million respectively. The increase was, however, offset by lower foreign exchange profit and lower gain on sale of development properties of RM334.8 million and RM71.1 million respectively.

OVERHEAD EXPENSES

The Groups overhead expenses for the financial year ended 31 December 2012 increased by RM700.2 million or 9.4% compared to the corresponding 12 months financial period ended 31 December 2011. The major contributors to the increase in overhead expenses were the Bank itself, Maybank Kim Eng, Maybank Islamic Bank and Maybank Investment Bank. The Groups personnel costs increased by RM595.8 million and formed 85.1% of the total increase in Groups overhead expenses. The increase in personnel costs was in line with the Groups business growth and its expansion plan.

The Groups cost-to-income ratio improved by 130 basis points to 48.6% from 49.9% in the corresponding twelve-month financial period ended 31 December 2011.

Net Income grew ahead of overhead expenses, a result of continuous efforts in improving efficiency and the implementation of a vigorous cost management exercise.

ALLOWANCES FOR IMPAIRMENT LOSSES ON LOANS, ADVANCES AND FINANCING

Allowance for impairment losses on loans, advances and financing increased by RM193.7 million to RM642.7 million for the year ended 31 December 2012. The increase was mainly due to higher individual allowances made. The Groups net impaired loans ratio improved to 1.09% as at 31 December 2012, compared to 1.86% as at 31 December 2011. In addition, the loan loss coverage ratio as at 31 December 2012 improved to 105.6% from 86.9% as at 31 December 2011.

TAXATION

The effective tax rate of the Group is 25.0% which is in line with the Malaysian statutory tax rate of 25.0%.

Note: For further financial analysis please refer to the Group Financial Review (Managements Discussions and Analysis) on pages 78 to 87 of the Annual Report.

Our Performance


the financials15

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Bank for the financial year ended 31 December 2012.

PRINCIPAL ACTIVITIESThe Bank is principally engaged in all aspects of commercial banking and related financial services.

The subsidiaries are principally engaged in the businesses of banking and finance, Islamic banking, investment banking including stock broking, underwriting of general and life insurance, general and family takaful, trustee and nominee services, asset management and venture capital. Further details of the subsidiaries are described in Note 58 to the financial statements.

There were no significant changes in these activities during the financial year.

RESULTS

GroupRM000

BankRM000

Profit before taxation and zakat 7,894,599 5,498,158 Taxation and zakat (1,977,306) (1,192,254)

Profit for the year 5,917,293 4,305,904

Attributable to:Equity holders of the Bank 5,744,696 4,305,904 Non-controlling interests 172,597

5,917,293 4,305,904

There were no material transfers to or from reserves or provisions during the financial year other than those as disclosed in Notes 10, 11, 41 and 42 and the statements of changes in equity of the financial statements.

In the opinion of the directors, the results of the operations of the Group and the Bank during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature other than the first-time adoption of Malaysian Financial Reporting Standards (MFRS) Framework and changes in accounting policies as disclosed in Note 2.4 to the financial statements.

The MFRS Framework as issued by the Malaysian Accounting Standards Board (MASB) is fully compliant with International Financial Reporting Standards (IFRS) that comprises standards as issued by the International Accounting Standards Board (IASB) that are effective on 1 January 2012.

DIVIDENDSThe amount of dividends paid by the Bank since 31 December 2011 were as follows:

RM000

In respect of the six-month financial period ended 31 December 2011 as reported in the directors report of that period:

Final dividend of 36 sen less 25% taxation consists of cash portion of 4 sen (net 3 sen) per ordinary share and an electable portion of 32 sen (net 24 sen) per ordinary share, on 7,639,448,883 ordinary shares, declared on 29 March 2012 and paid on 4 June 2012 2,062,651

In respect of the financial year ended 31 December 2012:

A first interim dividend of 32 sen less 25% taxation consists of cash portion of 4 sen (net 3 sen) per ordinary share and an electable portion of 28 sen (net 21 sen) per ordinary share, on 7,854,397,802 ordinary shares, declared on 16 August 2012 and paid on 25 October 2012 1,885,055

3,947,706


the financials16

DIRECTORS REPORT

Our Performance


DIVIDENDS (CONTD.)At the forthcoming Annual General Meeting, a final dividend in respect of the current financial year ended 31 December 2012 of 18 sen less 25% taxation and 15 sen single-tier dividend on 8,440,046,735 ordinary shares of RM1.00 each, amounting to a net dividend payable of RM2,405,413,319 (net 28.5 sen per ordinary share) will be proposed for the shareholders approval.

The proposed gross dividend consists of cash portion of 4 sen single-tier dividend per ordinary share to be paid in cash amounting to RM337,601,869 and an electable portion of 29 sen (net 24.5 sen) per ordinary share amounting to RM2,067,811,450, where the electable portion comprises of 11 sen single-tier dividend and 18 sen franked dividend (net 13.5 sen) per ordinary share of RM1.00 each.

The electable portion can be elected to be reinvested in new ordinary shares in accordance with the Dividend Reinvestment Plan (DRP) as disclosed in Note 31(b) to the financial statements and subject to the relevant regulatory approvals as well as shareholders approval at the forthcoming Annual General Meeting.

The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained profits in the next financial year ending 31 December 2013.

MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS)The Maybank Group Employees Share Scheme (ESS) is governed by the by-laws approved by the shareholders at an Extraordinary General Meeting held on 13 June 2011. The ESS was implemented on 23 June 2011. It is in force for a maximum period of seven (7) years from the effective date and is administered by the ESS Committee. The ESS consists of two (2) types of performance-based awards in the form of Employee Share Option Scheme (ESOS) and Restricted Share Unit (RSU).

The ESS Committee may, from time to time during the ESS period, make further RSU grants designated as Supplemental RSU (SRSU) grant to a selected group of eligible employees to participate in the RSU award. This selected group may consist of senior management, selected key retentions and selected senior external recruits and such SRSU grants may contain terms and conditions which may vary from earlier RSU grants made to selected senior management.

A separate cash-settled performance-based scheme (CESS) comprising of Cash-settled Performance-based Option Scheme (CESOS) and Cash-settled Performance-based Restricted Share Unit Scheme (CRSU) will be made available at the appropriate time to the eligible employees of overseas branches and subsidiaries of the Bank which include PT Bank Internasional Indonesia Tbk, PT Bank Maybank Syariah Indonesia, Maybank Philippines Incorporated and Maybank (PNG) Limited, subject to achievement of performance criteria set out by the Board of Directors and prevailing market practices in the respective countries.

the financials17

MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS) (CONTD.)Further details on the key features of the ESOS, RSU and CESS are disclosed in Note 31(c) to the financial statements.Details of ESOS granted, vested and exercised under the ESS are as follows:

(a) ESOS Granted

Grant date

Number of share options

000

Original exercise price

RM/optionExercise

period

23.6.2011 ESOS First Grant 405,309# 8.82* 30.6.2011 30.6.201630.4.2012 ESOS Second Grant 62,339# 8.83* 30.4.2012 22.6.2018

The aggregate maximum allocation of ESOS to Chief Executive Officer and senior management of the Group and the Bank shall not exceed 50%. The actual allocation of share options to Chief Executive Officer and senior management is 4.0% as at 31 December 2012.

# The estimated number of share options to be granted to the eligible employees that are expected to meet average performance target.

* The ESS Committee approved the reductions of the ESOS exercise price following the issuance of new ordinary shares of RM1.00 each pursuant to the implementation of DRP. The revisions on the exercise price made are as follows:

Grant date Exercise price

RM/optionExercise

period

23.6.2011 ESOS First Grant 8.82 23.6.2011 28.12.20118.78 29.12.2011 4.6.20128.76 5.6.2012 28.10.20128.75 29.10.2012 30.6.2016

30.4.2012 ESOS Second Grant 8.83 30.4.2012 28.10.20128.82 29.10.2012 22.6.2018

During the financial year ended 31 December 2012, a total of 42,136,100 under ESOS First Grant (31 December 2011: Nil) and 6,185,800 under ESOS Second Grant had been vested to a selected group of eligible employees.


the financials18

DIRECTORS REPORT

Our Performance


MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS) (CONTD.)(a) ESOS Granted (contd.)

The movements of ESOS vested in relation to the ESOS First and Second Grant vested are as follows:

ESOS First Grant (Vested)

Vesting date

Outstandingas at

1.1.2012000

Movements during the year Outstandingas at

31.12.2012000

Exercisableas at

31.12.2012000

Adjustment**000

Vested000

Exercised^000

Forfeited000

Expired000

23.6.2011 80,070 160 (798) (2,449) - 76,983 76,98330.4.2012 - - 42,136 (320) (533) 41,283 41,283

Total 80,070 160 42,136 (1,118) (2,982) - 118,266 118,266

** Adjustment relates to ESOS allocated in prior year but accepted during the financial year.^ 7,500 of the options exercised during the financial year ended 31 December 2012 were only issued and listed on the

next financial year.

ESOS Second Grant (Vested)

Vesting date

Outstandingas at

1.1.2012000


31.12.2012000

Exercisableas at

31.12.2012000

Vested000

Exercised000

Forfeited000

Expired000

30.4.2012 6,186 (8) (217) 5,961 5,961

(b) RSU Granted

Grant date


000 Vesting date

23.6.2011 RSU First Grant 3,590 3-year cliff vesting from the grant date and performance metrics

30.4.2012 RSU Second Grant 4,355

None of the RSU has been vested as at 31 December 2012.

the financials19

MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS) (CONTD.)(c) SRSU Granted

During the financial year ended 31 December 2012, a total of 119,000 SRSU (31 December 2011: 283,900 SRSU) had been granted to a selected group of eligible employees. A total of 37,500 SRSU (31 December 2011: Nil) had been vested as at 31 December 2012.

The movements of SRSU granted and vested are as follows:

SRSU Granted

Grant date

Outstandingas at

1.1.2012000


31.12.2012000

Granted000

Vested000

31.03.2011 209 209 3.10.2011 75 (37) 38 16.4.2012 15 15 7.5.2012 15 15 1.6.2012 24 24 1.6.2012 15 15 2.7.2012 30 30 15.12.2012 20 20

284 119 (37) 366

(d) CESOS Granted

During the financial year ended 31 December 2012, a second tranche amounting to 394,800 CESOS (31 December 2011: Nil) under the CESOS First Grant had been granted to a selected group of eligible employees in overseas branches.

In addition to the above, the Bank had also granted a total of 554,000 CESOS under the CESOS Second Grant to the confirmed new recruits in overseas branches and selected key retention employees of PT Bank Internasional Indonesia Tbk.

The movements of CESOS granted are as follows:

CESOS First Grant

Grant date

Outstandingas at

1.1.2012000


31.12.2012000

Adjustment***000

Granted000

Exercised000

Forfeited000

Expired000

23.6.2011 720 7 (74) 653

30.4.2012 395 (22) 373

720 7 395 (96) 1,026

*** Adjustment relates to CESOS allocated in prior year but accepted during the financial year.


the financials20

DIRECTORS REPORT

Our Performance


MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS) (CONTD.)(d) CESOS Granted (contd.)

CESOS Second Grant

Grant date

Outstandingas at

1.1.2012000


31.12.2012000

Granted000

Exercised000

Forfeited000

Expired000

23.2.2012 430 430

30.4.2012 124 (10) 114

554 (10) 544

None of the CESOS granted has been vested as at 31 December 2012.

(e) CRSU Granted

During the financial year ended 31 December 2012, a total of 15,000 CRSU had been granted to eligible senior management of the Group and the Bank. None of the CRSU granted has been vested as at 31 December 2012.

The Bank has been granted exemption by the Companies Commission of Malaysia from having to disclose the names of employees who have been granted options which have been vested to subscribe for less than 300,000 ordinary shares of RM1.00 each during the financial year.

The maximum number of ordinary shares of RM1.00 each in the Bank available under the ESS and CESS should not exceed 10% of the total number of issued and paid-up capital of the Bank at any point of time during the duration of the scheme. Other principal features of the ESS are disclosed in Note 31(c) (f) to the financial statements.

The names of option holders who were granted options which have been vested to subscribe for at least 300,000 ordinary shares of RM1.00 each during the financial year are as follows:

Name


As at 1.1.2012

000 Adjustment*

000 Vested

000 Exercised

000

As at 31.12.2012

000

Dato Sri Abdul Wahid bin Omar 500 250 750 Datuk Lim Hong Tat 200 125 325 John Chong Eng Chuan 200 125 325 Hans de Cuyper 200 100 300 Dato Khairussaleh bin Ramli 200 125 325 Datuk Abdul Farid bin Alias 200 125 325 Tengku Dato Zafrul Bin Tengku Abdul Aziz 192 125 317 Sim Sio Hoong 150 50 125 325 Normala @ Noraizah Binti A. Manaf 150 50 100 300 Geoffrey Michael Stecyk 150 50 100 300

the financials21

MAYBANK GROUP EMPLOYEES SHARE SCHEME (ESS) (CONTD.)All the options were granted on 23 June 2011 at an original exercise price of RM8.82, which was revised to RM8.78 on 29 December 2011, then further revised to RM8.76 on 5 June 2012 and to RM8.75 on 29 October 2012, which can then be exercised within a period of five (5) years.

* Adjustment relates to additional ESOS allocated to selected senior management during the financial year.

ISSUE OF SHARE CAPITALDuring the current financial year, the Bank increased its issued and paid-up capital from RM7,639,437,483 to RM8,440,046,735 via:

(a) Issuance of 1,118,700 new ordinary shares of RM1.00 each for cash, to eligible persons who exercised their options under the ESS, as disclosed in Note 31(d)(ii) to the financial statements;

(b) Issuance of 202,854,119 new ordinary shares of RM1.00 each arising from the Dividend Reinvestment Plan (DRP) relating to electable portion of the final dividend of 24 sen (net) in respect of financial period ended 31 December 2011, as disclosed in Note 46(c)(i) to the financial statements;

(c) Issuance of 173,144,233 new ordinary shares (including 286,367 new ordinary shares issued to ESOS Trust Fund (ETF) Pool) of RM1.00 each arising from the Dividend Reinvestment Plan (DRP) relating to the interim dividend of 21 sen (net) in respect of financial year ended 31 December 2012, as disclosed in Note 46(c)(ii) to the financial statements;

(d) Issuance of 11,454,700 new ordinary shares of RM1.00 each to be held in the ESOS Trust Fund (ETF) Pool pursuant to the current ESS, as disclosed in Note 31(c)(v) to the financial statements;

(e) Issuance of 412,000,000 new ordinary shares of RM1.00

each arising from the Private Placement, as disclosed in Note 55(l) to the financial statements; and

(f) Issuance of 37,500 new ordinary shares of RM1.00 each arising from the Supplemental Restricted Share Unit (SRSU), as disclosed in Note 31(e)(iv) to the financial statements.

The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary shares of the Bank.

DIRECTORSThe directors who served since the date of the last report and the date of this report are:

Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor (Chairman)Dato Mohd Salleh bin Hj Harun (Vice Chairman)Dato Sri Abdul Wahid bin Omar (President and Chief Executive Officer)Tan Sri Datuk Dr Hadenan bin A. Jalil Dato Seri Ismail bin Shahudin Dato Dr Tan Tat Wai Encik Zainal Abidin bin Jamal Dato Johan bin Ariffin Mr Cheah Teik Seng Mr Alister Maitland Datuk Mohaiyani binti Shamsudin Mr Erry Riyana Hardjapamekas (appointed on 25 June 2012)Dato Sreesanthan Eliathamby (retired on 29 March 2012)


the financials22

DIRECTORS REPORT

Our Performance


DIRECTORS BENEFITSNeither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Bank or its subsidiary was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of

the Bank or any other body corporate, other than those arises from the share options and the RSU pursuant to the ESS.

Since the end of the previous financial period, no director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors from the Bank and related corporations, or the fixed salary of a full time employee of the Bank as disclosed in Note 40 to the financial statements) by reason of a contract made by the Bank or a related corporation with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

DIRECTORS INTERESTSAccording to the register of directors shareholdings, the interests of directors in office at the end of the financial year in shares, share options and RSU of the Bank during the financial year were as follows:

Direct interest

Number of ordinary shares of RM1.00 each

As at 1.1.2012 Acquired

Issued pursuant to DRP

As at 31.12.2012

Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor 36,039 2,009 38,048Dato Mohd Salleh bin Hj Harun 314,782 7,869 322,651Dato Seri Ismail bin Shahudin 23,242 23,242Dato Johan bin Ariffin 126,337 25,774 8,362 160,473

Indirect interest

Number of ordinary shares of RM1.00 each

As at 1.1.2012 Acquired

Issued pursuant to DRP

As at 31.12.2012

Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor * 26,688 1,487 28,175Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor ** 31,718 1,766 33,484 Dato Dr Tan Tat Wai * 5,467 5,467

* Interest by virtue of shares held by spouse. ** Interest by virtue of shares held via childrens account.

the financials23

DIRECTORS INTERESTS (CONTD.)

Number of options over ordinary shares of RM1.00 each

ExercisePrice (RM)

Granted on 23.6.2011

As at 1.1.2012 Vested Exercised

As at 31.12.2012

Dato Sri Abdul Wahid bin Omar 8.82# 2,500,000 500,000 250,000 750,000

# Revised to RM8.75 on 29 October 2012 which is based on ESOS First Grant.

Number of restricted unit (RSU) of ordinary shares of RM1.00 each

Grant Date Granted As at

1.1.2012 Vested As at

31.12.2012

Dato Sri Abdul Wahid bin Omar 23.6.2011 200,000 30.4.2012 200,000

The remaining share options and RSU which were granted to the director have not been vested as at 31 December 2012. The remaining share options and RSU will be vested and exercisable upon fulfilment of vesting conditions or predetermined performance metrics including service period, performance targets and performance period.

None of the other directors in office at the end of the financial year had any interest in shares in the Bank or its related corporations during the financial year.

RATING BY EXTERNAL RATING AGENCIESDetails of the Banks ratings are as follows:

Rating agency Date Rating classification Rating received

Moodys Investors Service 29 August 2012 Long-term Foreign Currency Bank Deposit/Outlook A3/StableShort-term Foreign Currency Bank Deposit P-2/StableLong-term Local Currency Bank Deposit/Outlook A1/Stable Short-term Local Currency Bank Deposit P-1/StableBank Financial Strength Rating/Outlook C/StableBaseline Credit Assessment (a3)/StableAdjusted Baseline Credit Assessment (a3)/StableJr Subordinate Baa2/Stable


the financials24

DIRECTORS REPORT

Our Performance


Rating agency Date Rating classification Rating received

Standard & Poors (S&P) 20 December 2011 Long-term counterparty A-Short-term counterparty A-2Certificate of Deposit A-Preferred Stock (1 Issue) BBB-Subordinated (2 Issues) BBB+Outlook Stable

19 July 2012 Senior Unsecured (1 Issue) A-

Fitch Ratings 7 March 2012 Foreign Long-term Issuer Default Rating A-/StableLocal Long-term Issuer Default Rating A-/StableViability Rating a-Support Rating 2 Support Rating Floor BBB

19 April 2011 USD and SGD Sub Debt BBB+SGD Tier 1 Capital Securities BB+

RAM Ratings Services 30 November 2012 Long-term Financial Institution Ratings AAA Berhad (RAM) Short-term Financial Institution Ratings P1 Subordinated Bonds AA1

Innovative Tier-1 Capital Securities AA2Non-Innovative Tier-1 Capital Securities AA2Tier-2 Capital Subordinated Note Programme AA1Subordinated Note Programme AA1Outlook (Long Term) Stable

Malaysian Rating 12 July 2012 Long-term Financial Institution Ratings AAA Corporation Bhd Short-term Financial Institution Ratings MARC-1

Outlook Stable

RATING BY EXTERNAL RATING AGENCIES (CONTD.)Details of the Banks ratings are as follows (contd.):

the financials25

BUSINESS OUTLOOKGlobal macro economic growth is expected to stabilise in 2013 with real GDP forecast at 3.4% from an expected 3.3% in 2012 due to continued US recovery, stabilising of the crisis in Eurozone, a moderate but more sustainable growth in China and sustained expansion in Asia ex-Japan. The ASEAN 5 economies of Indonesia, Malaysia, Philippines, Thailand and Vietnam, is expected to outperform on continued resilience in domestic demand and relative improvement in net external demand, with GDP growth sustained at 5.5% in 2013 from 5.7% in 2012.

Maybanks three home markets consisting of Malaysia, Singapore and Indonesia, which contribute more than 90% of the Groups income and profit, are expected to record positive revenue growth on the back of improved economic expansion. In Malaysia, real GDP growth is expected to remain resilient above 5.0% (2012: 5.6%) due to sustained domestic demand and strong investment from implementation of projects under the Economic Transformation Programme, supported by an accommodative monetary policy. However, consumer spending may turn cautious in the second half on the prospects of higher inflation on gradual withdrawal of energy-related subsidies and a possible hike in the Overnight Policy Rate. In Indonesia, strong domestic demand and inflow of foreign investments should enable it to record higher GDP growth of 6.7% (2012: 6.2%) while Singapores economic growth is expected to improve to 3.0% (2012: 1.5%) on the back of stable growth across the advanced economies.

Maybanks business momentum is expected to continue in 2013 on the back of improved loans growth in its three home markets and other markets in the region, higher non-interest income as a result of a healthy deal pipeline for the investment banking business, while deriving higher revenue from regional initiatives.

Having established its presence in all ten ASEAN countries in 2012, the Group is focused on building a truly regional organisation. Global Bankings (formerly known as Global Wholesale Banking) global relationship coverage model is being extended to realise merger synergies with Maybank Kim Eng and will see closer collaboration with overseas units especially in Singapore, Indonesia and Philippines.

Adoption of good corporate governance and upgrading of IT infrastructure will further improve business capability in the Groups Global Banking (formerly known as Global Wholesale Banking), Investment Banking, credit cards, treasury and payment operations. The Group will continue to raise the quality of customer services, embed the right robust risk culture to sustain its strong asset quality, and improve effectiveness and efficiency through an optimal cost structure.

The Group is poised to remain well capitalised for 2013 in accordance with Bank Negara Malaysias Capital Adequacy Framework on Basel III which was issued on 28 November 2012. Supported by the recent private equity placement of RM3.66 billion undertaken in October 2012 and with continued conservation of capital from the Dividend Reinvestment Plan, the Group is expected to maintain a Common Equity Tier 1 Capital (CET1) ratio of above 7% well ahead of the minimum level of CET1 ratio (inclusive of capital conservation buffer) as required by 2019.

Barring any unforeseen circumstances, the Group expects its financial performance for the financial year ending 31 December 2013 to be better than the previous financial year. The Group has set two Headline Key Performance Indicators (KPIs) of Return on Equity (ROE) of 15.0% (based on enlarged equity capital from private placement and dividend reinvestment plan) and loans growth of 12.0% for the year ending 31 December 2013.


the financials26

DIRECTORS REPORT

Our Performance


OTHER STATUTORY INFORMATION(a) Before the statements of financial position and income

statements of the Group and of the Bank were made out, the directors took reasonable steps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowances had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

(b) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Bank which would render:

(i) the amount written off for bad debts or the amount of the allowances for doubtful debts in the financial statements of the Group and of the Bank inadequate to any substantial extent; and

(ii) the values attributed to current assets in the financial statements of the Group and of the Bank misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Bank misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Bank which would render any amount stated in the financial statements misleading.

(e) As at the date of this report, there does not exist:(i) any charge on the assets of the Group and of the

Bank which has arisen since the end of the financial year which secures the liabilities of any other person; or

(ii) any contingent liability of the Group or of the Bank which has arisen since the end of the financial year other than those arising in the normal course of business of the Group and of the Bank.

(f) In the opinion of the directors:(i) no contingent liability or other liability has become

enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group and of the Bank to meet their obligations as and when they fall due; and

(ii) no item or transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Bank for the financial year in which this report is made.

COMPLIANCE WITH BANK NEGARA MALAYSIAS GUIDELINES ON FINANCIAL REPORTINGIn the preparation of the financial statements of the Group and the Bank, the directors have taken reasonable steps to ensure that Bank Negara Malaysias Guidelines on financial reporting have been complied with, including those as set out in the Guidelines on Financial Reporting for Financial Institutions and the Guidelines on Classification and Impairment Provisions for Loans/Financing.

the financials27

SIGNIFICANT AND SUBSEQUENT EVENTSThe significant and subsequent events are as disclosed in Note 55 to the financial statements. There are no significant adjusting events after the statements of financial position date up to the date when the financial statements are authorised for issuance.

CHANGE OF FINANCIAL YEAR-ENDThe financial year end of the Bank and its subsidiaries was changed from 30 June to 31 December in the previous financial period. Accordingly, the comparative financial statements of the Group and of the Bank for the previous financial period ended 31 December 2011 covers a six-month period compared to a twelve-month period for the current financial year, and therefore the comparative amounts are not comparable for the income statements, statements of comprehensive income, statements of changes in equity, statements of cash flows and the related notes.

AUDITORSThe auditors, Ernst & Young, have expressed their willingness to continue in office.

Signed on behalf of the Board in accordance with a resolution of the directors dated 21 February 2013.

Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor Dato Sri Abdul Wahid bin OmarKuala Lumpur, Malaysia


the financials28

DIRECTORS REPORT

We, Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor and Dato Sri Abdul Wahid bin Omar, being two of the directors of Malayan Banking Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 34 to 461 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Bank as at 31 December 2012 and of the results and the cash flows of the Group and of the Bank for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 21 February 2013.

Tan Sri Dato Megat Zaharuddin bin Megat Mohd Nor Dato Sri Abdul Wahid bin OmarKuala Lumpur, Malaysia

I, Mohamed Rafique Merican bin Mohd Wahiduddin Merican, being the officer primarily responsible for the financial management of Malayan Banking Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 34 to 461 are in my opinion correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed Mohamed Rafique Merican bin Mohd Wahiduddin Mericanat Kuala Lumpur in the Federal Territory on 21 February 2013 Mohamed Rafique Merican bin Mohd Wahiduddin Merican

Before me,

Our Performance


the financials29

STATEMENT BYDIRECTORSPursuant to Section 169(15) of the Companies Act, 1965

STATUTORY DECLARATIONPursuant to Section 169(16) of the Companies Act, 1965

REPORT ON THE FINANCIAL STATEMENTSWe have audited the financial statements of Malayan Banking Berhad, which comprise the statements of financial position as at 31 December 2012 of the Group and of the Bank, and the income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Bank for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 34 to 460.

Directors responsibility for the financial statements

The directors of the Bank are responsible for the preparation of financial statements that give a true and fair view in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Banks preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Banks internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the Bank as at 31 December 2012 and of their financial performances and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSIn accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Bank and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b) We have considered the financial statements and the auditors reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 58(a) to the financial statements, being financial statements that have been included in the consolidated financial statements.

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Bank are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes.

(d) The auditors reports on the financial statements of the subsidiaries were not subject to any qualification and in respect of the subsidiaries incorporated in Malaysia, did not include any comment required to be made under Section 174(3) of the Act.


the financials30

INDEPENDENT AUDITORS REPORT to the members of Malayan Banking Berhad (Incorporated in Malaysia)

Our Performance


Other Reporting Responsibilities

The supplementary information set out in Note 61 on page 461 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad and is not part of the financial statements. The directors are responsible for the preparation of the supplementary information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance based on the directive of Bursa Malaysia Securities Berhad.

Other Matters

This report is made solely to the members of the Bank, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Chan Hooi LamAF: 0039 No. 2844/02/14(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia21 February 2013

rnst & YoungF: 0039h t d A t t

the financials31

Consolidated statement of financial position

36 Statement of financial position

37 Income statements

39 Statements of comprehensive income

40 Consolidated statement of changes in equity

42 Statement of changes in equity

44 Statements of cash flows

Notes to the financial statements

47 1. Corporate information

47 2. Accounting policies

98 3. Significant accounting judgments, estimates and assumptions

102 4. Standards and interpretations issued but not yet effective

106 5. Cash and short-term funds

107 6. Deposits and placements with financial institutions

108 7. Financial assets purchased under resale agreements and obligations on financial assets sold under repurchase agreements

109 8. Financial assets at fair value through profit or loss (FVTPL)

Page

113 9. Financial investments available-for-sale

116 10. Financial investments held-to-maturity

119 11. Loans, advances and financing

132 12. Derivative financial instruments

139 13. Reinsurance/retakaful assets and other insurance receivables

140 14. Other assets

143 15. Investment properties

144 16. Statutory deposits with central banks

144 17. Investment in subsidiaries

150 18. Interest in associates

152 19. Property, plant and equipment

164 20. Intangible assets

171 21. Deposits from customers

173 22. Deposits and placements from financial institutions

175 23. Insurance/takaful contract liabilities and other insurance payables

181 24. Other liabilities

183 25. Recourse obligation on loans and financing sold to Cagamas

184 26. Provision for taxation and zakat

INDEX TO THE FINANCIAL STATEMENTS


the financials32

Page

Notes to the financial statements (contd.)

185 27. Deferred tax

190 28. Borrowings

193 29. Subordinated obligations

197 30. Capital securities

200 31. Share capital, share based payments and shares held-in-trust

213 32. Retained profits

215 33. Other reserves

215 34. Operating revenue

216 35. Interest income

216 36. Interest expense

217 37. Net income from insurance/takaful business

219 38. Non-interest income

221 39. Overhead expenses

223 40. Directors fees and remuneration

227 41. Allowances for impairment losses on loans, advances and financing, net

227 42. Allowances for/(writeback of) impairment losses of financial investments, net

228 43. Taxation and zakat

230 44. Significant related party transactions and balances

Page

236 45. Earnings per share (EPS)

237 46. Dividends

239 47. Commitments and contingencies

246 48. Financial risk management policies

376 49. Fair values of financial assets and liabilities

386 50. Capital and other commitments

387 51. Capital management

388 52. Internal capital adequacy assessment process

390 53. Capital adequacy

397 54. Segment information

402 55. Significant and subsequent events

407 56. Statements of financial position of insurance and takaful business

410 57. The operations of Islamic Banking Scheme (IBS)

447 58. Details of subsidiaries and associates

460 59. Currency

460 60. Comparatives

461 61. Supplementary information breakdown of retained profits into realised and unrealised

Our Performance


the financials33

Group

As at Note 31.12.2012 31.12.2011 1.7.2011 RM000 RM000 RM000

ASSETS

Cash and short-term funds 5 40,018,633 49,387,882 39,481,871Deposits and placements with financial institutions 6 11,949,150 7,161,651 10,423,251Financial assets purchased under resale agreements 7(a) 798,180 1,397,235 Financial assets at fair value through profit or loss 8 29,156,692 18,393,752 12,665,824Financial investments available-for-sale 9 60,792,374 63,585,045 61,767,912Financial investments held-to-maturity 10 2,870,768 2,689,806 2,437,441Loans, advances and financing 11 311,824,735 276,252,853 255,017,693Derivative assets 12 2,880,492 1,987,502 1,693,964Reinsurance/retakaful assets and other insurance receivables 13 2,555,727 2,173,794 2,107,340Other assets 14 6,680,257 4,749,820 4,898,654Investment properties 15 572,662 542,477 525,521Statutory deposits with central banks 16 12,298,362 10,577,416 7,698,425Interest in associates 18 2,235,233 2,406,462 2,439,654Property, plant and equipment 19 2,402,821 2,217,483 2,125,217Intangible assets 20 6,531,336 6,748,053 6,637,954Deferred tax assets 27 1,298,871 1,323,606 1,333,696

Total assets 494,866,293 451,594,837 411,254,417

LIABILITIES

Deposits from customers 21 347,155,510 314,692,245 282,797,134Deposits and placements from financial institutions 22 33,887,376 36,760,978 33,303,655Obligations on financial assets sold under repurchase agreements 7(b) 267,652 373,562Bills and acceptances payable 2,269,513 4,472,872 8,513,401Derivative liabilities 12 2,376,979 2,162,709 1,533,935Insurance/takaful contract liabilities and other insurance payables 23 21,928,872 20,090,908 19,313,540Other liabilities 24 9,597,742 6,407,906 7,266,361Recourse obligation on loans and financing sold to Cagamas 25 1,592,974 2,214,873 1,210,964Provision for taxation and zakat 26 1,051,798 382,562 182,759Deferred tax liabilities 27 676,514 672,025 658,582Borrowings 28 10,714,266 7,185,230 5,447,120Subordinated obligations 29 13,510,041 14,160,553 10,800,539Capital securities 30 6,150,351 6,113,761 6,120,774

Total liabilities 450,911,936 415,584,274 377,522,326


the financials34

CONSOLIDATED STATEMENT OFFINANCIAL POSITION as at 31 December 2012

Our Performance


Group

As at Note 31.12.2012 31.12.2011 1.7.2011 RM000 RM000 RM000

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK

Share capital 31 8,440,046 7,639,437 7,478,206Share premium 15,639,646 9,598,847 8,583,711Shares held-in-trust 31(c)(v) (102,405) Retained profits 32 11,115,006 10,393,767 10,167,728Other reserves 33 7,136,600 6,824,192 6,165,573

42,228,893 34,456,243 32,395,218

Non-controlling interests 1,725,464 1,554,320 1,336,873

43,954,357 36,010,563 33,732,091

Total liabilities and shareholders equity 494,866,293 451,594,837 411,254,417

Commitments and contingencies 47 379,695,035 369,791,836 292,109,263

The accompanying notes form an integral part of the financial statements.

the financials35

Bank

As at Note 31.12.2012 31.12.2011 1.7.2011 RM000 RM000 RM000

ASSETSCash and short-term funds 5 23,153,242 35,966,579 25,803,796Deposits and placements with financial institutions 6 10,039,999 6,246,093 7,644,471Financial assets purchased under resale agreements 7(a) 650,314 1,397,235 Financial assets at fair value through profit or loss 8 10,719,937 7,325,466 2,884,895Financial investments available-for-sale 9 47,366,309 46,514,200 47,100,880Financial investments held-to-maturity 10 2,556,849 2,115,933 1,638,070Loans, advances and financing 11 214,852,046 194,174,085 181,572,844Derivative assets 12 2,812,148 1,949,344 1,626,415Other assets 14 2,713,063 2,240,433 1,420,365Statutory deposits with central banks 16 6,888,916 6,095,129 4,313,116Investment in subsidiaries 17 17,634,469 17,230,202 17,070,392Interest in associates 18 456,512 456,512 454,412Property, plant and equipment 19 1,205,788 1,083,279 1,044,934Intangible assets 20 697,066 389,545 302,519Deferred tax assets 27 810,015 815,573 886,484

Total assets 342,556,673 323,999,608 293,763,593

LIABILITIESDeposits from customers 21 237,402,079 222,895,293 201,465,408Deposits and placements from financial institutions 22 29,198,776 35,555,592 31,441,675Obligations on financial assets sold under repurchase agreements 7(b) 267,652 373,562Bills and acceptances payable 1,553,312 3,610,141 7,115,673Derivative liabilities 12 2,243,617 2,072,731 1,446,311Other liabilities 24 8,645,423 6,351,178 4,240,156Recourse obligation on loans and financing sold to Cagamas 25 687,793 715,603 528,285Provision for taxation and zakat 26 758,446 Borrowings 28 7,382,719 4,208,282 3,420,499Subordinated obligations 29 11,638,850 12,574,919 9,509,786Capital securities 30 6,150,351 6,113,761 6,120,774

Total liabilities 305,661,366 294,365,152 265,662,129

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANKShare capital 31 8,440,046 7,639,437 7,478,206Share premium 15,639,646 9,598,847 8,583,711Shares held-in-trust 31(c)(v) (102,405) Retained profits 32 4,179,482 4,895,012 5,140,905Other reserves 33 8,738,538 7,501,160 6,898,642

36,895,307 29,634,456 28,101,464

Total liabilities and shareholders equity 342,556,673 323,999,608 293,763,593

Commitments and contingencies 47 338,799,380 336,480,160 265,846,025



the financials36

STATEMENT OF FINANCIAL POSITIONas at 31 December 2012

Our Performance


Group Bank

1.1.2012 1.7.2011 1.1.2012 1.7.2011 to to to to 31.12.2012 31.12.2011 31.12.2012 31.12.2011 Note RM000 RM000 RM000 RM000

Operating revenue 34 27,532,461 12,892,202 17,346,458 8,175,188

Interest income 35 14,847,018 7,004,319 11,194,494 5,359,581Interest expense 36 (6,366,301) (2,978,041) (4,959,002) (2,253,712)

Net interest income 8,480,717 4,026,278 6,235,492 3,105,869Income from Islamic Banking Scheme operations 57 2,196,259 1,008,037

10,676,976 5,034,315 6,235,492 3,105,869Net income from insurance/takaful business 37 652,445 426,519

11,329,421 5,460,834 6,235,492 3,105,869Dividends from subsidiaries and associates 856,049 363,257Other operating income 5,273,749 2,374,180 3,076,166 1,497,952Non-interest income 38 5,273,749 2,374,180 3,932,215 1,861,209

Net income 16,603,170 7,835,014 10,167,707 4,967,078Overhead expenses 39 (8,158,120) (3,941,839) (4,403,790) (2,072,888)

Operating profit before impairment losses 8,445,050 3,893,175 5,763,917 2,894,190Allowances for impairment losses on loans, advances and financing, net 41 (642,711) (329,080) (268,844) (166,141)(Allowances for)/writeback of impairment losses on financial investments, net 42 (60,216) (67,237) 3,085 (57,864)

Operating profit 7,742,123 3,496,858 5,498,158 2,670,185Share of profits of associates 152,476 74,234

Profit before taxation and zakat carried forward 7,894,599 3,571,092 5,498,158 2,670,185

the financials37

INCOME STATEMENTSfor the year ended 31 December 2012

Group Bank


Profit before taxation and zakat brought forward 7,894,599 3,571,092 5,498,158 2,670,185Taxation and zakat 43 (1,977,306) (888,993) (1,192,254) (604,900)

Profit for the year/period 5,917,293 2,682,099 4,305,904 2,065,285

Attributable to:Equity holders of the Bank 5,744,696 2,587,052 4,305,904 2,065,285Non-controlling interests 172,597 95,047

5,917,293 2,682,099 4,305,904 2,065,285

Earnings per share attributable to equity holders of the Bank Basic (sen) 45 72.7 34.5 Diluted (sen) 45 72.7 34.5

Net dividends per ordinary share held by equity holders of the Bank in respect of financial year/period (sen) Paid First Interim 46 24.00 Paid Final for the financial year ended

30 June 2011 46 24.00 Final for the financial period ended 31 December 2011 46 27.00 Proposed Final 46 28.50 Final 27.00



the financials38

INCOME STATEMENTSfor the year ended 31 December 2012

Group Bank


Profit for the year/period 5,917,293 2,682,099 4,305,904 2,065,285

Other comprehensive income:

Net gain/(loss) on revaluation of financial investments available-for-sale 52,715 20,454 (31,892) 46,833Income tax relating to components of other comprehensive income 27 (2,522) (23,387) 7,973 (11,549)Foreign currency translation (933,136) 55,160 85,996 (11,489)Changes in other reserves (547) (220)

Other comprehensive income for the year/period, net of tax (883,490) 52,007 62,077 23,795

Total comprehensive income for the year/period 5,033,803 2,734,106 4,367,981 2,089,080

Other comprehensive income for the year/ period, attributable to:

Equity holders of the Bank (897,033) 45,405 62,077 23,795Non-controlling interests 13,543 6,602

(883,490) 52,007 62,077 23,795

Total comprehensive income for the year/ period attributable to:

Equity holders of the Bank 4,847,663 2,632,457 4,367,981 2,089,080Non-controlling interests 186,140 101,649

5,033,803 2,734,106 4,367,981 2,089,080


Our Performance


the financials39

STATEMENTS OF COMPREHENSIVE INCOMEfor the year ended 31 December 2012

Group

ShareCapital

(Note31)RM000

SharePremium

RM000

SharesHeld-in-

trust(Note31)RM000

StatutoryReserve(Note33)RM000

CapitalReserve(Note33)RM000

Un-realisedHoldingReserve(Note33)RM000

ExchangeFluctuation

Reserve(Note33)RM000

Revalua-tion


ESSReserve(Note33)RM000

ProfitEquali-sation


*RetainedProfits

(Note32)RM000

TotalShare-

holdersEquity

RM000

Non-Control-

lingInterests

RM000

TotalEquity

RM000

At 1 January 2012 - as reported under FRS 7,639,437 9,598,847 6,926,383 15,250 350,981 (969,382) 8,817 127,317 34,456 9,713,321 33,445,427 1,230,563 34,675,990 - effects of adoption of MFRS: as described in Note 2.4(i)(a) 296,832 296,832 3,730 300,562 - as described in Note 2.4(iv) 33,538 680,446 713,984 320,027 1,034,011

At 1 January 2012, under MFRS 7,639,437 9,598,847 6,926,383 15,250 681,351 (969,382) 8,817 127,317 34,456 10,393,767 34,456,243 1,554,320 36,010,563

Profit for the year 5,744,696 5,744,696 172,597 5,917,293Other comprehensive income (445) (673) 26,339 (921,423) (831) (897,033) 13,543 (883,490)Total comprehensive income for the year (445) (673) 26,339 (921,423) (831) 5,744,696 4,847,663 186,140 5,033,803Share-based payment under Employees Share Scheme ("ESS") (Note 31(c)) 99,763 99,763 99,763Effect of net acquisition from/ disposal to non-controlling interests (323) 13,165 19,275 32,117 27,524 59,641Transfer to statutory reserves 1,097,774 (1,097,774) Issue of shares pursuant to ESS (Note 31(a)(i)&(vi)) 1,156 9,659 (938) 9,877 9,877Issue of shares pursuant to Dividend Reinvestment Plan (DRP) (Note 31(a)(ii)&(iii)) 375,998 2,696,035 (2,405) 3,069,628 3,069,628Issue of shares pursuant to ESOS Transfer Fund ("ETF") (Note 31(a)(iv)) 11,455 88,545 (100,000) Issue of shares pursuant to Private Placement (Note 31(a)(v)) 412,000 3,246,560 3,658,560 3,658,560Dividends (Note 46) (3,944,958) (3,944,958) (42,520) (3,987,478)

Total transactions with shareholders 800,609 6,040,799 (102,405) 1,097,774 (323) 13,165 98,825 (5,023,457) 2,924,987 (14,996) 2,909,991

At 31 December 2012 8,440,046 15,639,646 (102,405) 8,023,712 14,254 707,690 (1,877,640) 7,986 226,142 34,456 11,115,006 42,228,893 1,725,464 43,954,357

* Retained profits includes distributable and non-distributable profits arising from Non-DPF surplus of an insurance subsidiary. Refer to Note 32 for further details.


the financials40

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2012

Our Performance


Non-Control-

lingInterests

RM000

TotalEquity

RM000

Group (contd)

ShareCapital

(Note31)RM000

SharePremium

RM000

StatutoryReserve(Note33)RM000

CapitalReserve(Note33)RM000

Un-realisedHoldingReserve(Note33)RM000

ExchangeFluctuation


Revalua-tion


ESSReserve(Note33)RM000

ProfitEquali-sation


*RetainedProfits

(Note32)RM000

TotalShare-

holdersEquity

RM000

At 1 July 2011 - as reported under FRS 7,478,206 8,583,711 6,409,922 15,250 417,065 (1,007,977) 9,057 65,000 9,491,265 31,461,499 1,008,766 32,470,265 - effects of adoption of MFRS: as described in Note 2.4(i)(a) 207,875 207,875 2,765 210,640 as described in Note 2.4(iv) 49,381 676,463 725,844 325,342 1,051,186

At 1 July 2011, under MFRS 7,478,206 8,583,711 6,409,922 15,250 674,321 (1,007,977) 9,057 65,000 10,167,728 32,395,218 1,336,873 33,732,091

Profit for the period 2,587,052 2,587,052 95,047 2,682,099Other comprehensive income 20 7,030 38,595 (240) 45,405 6,602 52,007

Total comprehensive income for the period 20 7,030 38,595 (240) 2,587,052 2,632,457 101,649 2,734,106

Effect of adopting BNM's Revised Guidelines for Profit Equalisation Reserve ("PER") 34,456 34,456 34,456Transfer to PER 34,456 (34,456) Share-based payment under Employees' Share Scheme ("ESS") (Note 31(c)) 62,323 62,323 62,323Effect of net acquisition from/disposal to non-controlling interests (49,800) (49,800) 120,262 70,462Effect of disposal of indirect subsidiaries (1,132) (1,132)Transfer to statutory reserves 516,441 (516,441) Issue of shares pursuant to ESS 10 84 (6) 88 88Issue of shares pursuant to Dividend Reinvestment Plan ("DRP") 161,221 1,015,052 1,176,273 1,176,273Dividends (Note 46) (1,794,772) (1,794,772) (3,332) (1,798,104)

Total transactions with shareholders 161,231 1,015,136 516,441 62,317 34,456 (2,361,013) (571,432) 115,798 (455,634)

At 31 December 2011 7,639,437 9,598,847 6,926,383 15,250 681,351 (969,382) 8,817 127,317 34,456 10,393,767 34,456,243 1,554,320 36,010,563

* Retained profits includes distributable and non-distributable profits arising from Non-DPF surplus of an insurance subsidiary. Refer to Note 32 for further details.


the financials41

Bank

ShareCapital

(Note 31)RM000

SharePremium

RM000

SharesHeld-

maybank annual report 2012 - financial statements book

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